Julia Barnard

Partner

Capital Gains Tax Planning

Capital Gains Tax (CGT) is a tax on profits made when you sell or gift an asset. This could include a second house, buy-to-let, share portfolio or shares in a family business.

Tax rates range from 10 per cent to 28 per cent, so with proper planning and careful thought, real savings can be made.

We can help you plan your way through the CGT minefield by advising which tax reliefs could be obtained and how to get them.

There are two key reliefs which you should always try to maximise:

Capital gains on the disposal of your main house are normally exempt but there are times when it is restricted. Many people often have more than one home and with careful planning both could qualify for exemption.

Business assets can often qualify for the 10 per cent rate of tax resulting from Entrepreneur’s Relief. Not everything connected to a business will qualify. However, we can advise how best to maximise your tax relief.

For example, you may believe that you automatically qualify for the relief on your shares in your family business. This is not always the case but with a few careful steps you may well be able to achieve the 10 per cent rate.

It is important to remember that capital gains tax planning takes time. Most reliefs are only available after a set period.

Our experts will advise you on an effective route through CGT planning, ensuring that your affairs are organised in such a way that any future sales benefit from available tax reliefs.

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